In the case of the fee electricitywhere the removal of subsidies will be carried out in three tranches of 20%, and $4,500 was paid in September 2022, at the end of March 2023 it would end up paying $7,776.
custom service Waterwhich is expected to have 45% of the subsidy in November, 30% in January 2023 and 15% in March 2023, would go from paying $800 to $3,900.
The same would happen with the rate of gas (with increases in three tranches of 20%, 24% and 26%), with which the value goes from $3,500 in September to $5,468 in March 2023.
Regarding the service of rental For a 3-room apartment, a contract was taken in March 2020 at $40,000 and was adjusted by the Central Bank Lease Contract Index for 2021 and finally by the REM data. In this case, a family went from paying $60,000 as of March 2021 to $114,000 in March 2023.
“The economic situation of Argentines for the coming months will be one of adjustment because their income level will not be able to compensate for the cumulative increases in services that are coming. While the Government thinks that the equilibrium variable of private income is wages , the majority of Argentines are self-employed or informal who have no way of obtaining the services required to continue maintaining their socioeconomic level”, he pointed Damian DiPacedirector of the consulting firm Focus Market.
By taking other necessary services and adjusting them for inflation (we use the REM data to adjust prices, because for this month all the increases have already been given, although more increases due to inflation are not ruled out), the car insurance would go from $11,300 to $15,640, the Internet service from $3,800 to $5,259 and the service of cable tv and streaming of series and movies from $3,800 to $5,121.
“While in the first stage of the year core and seasonal inflation were ahead of regulated prices, now this scenario is beginning to reverse and regulated prices will be ahead. average increase for the case of goods. The public accounts are adjusted through the pockets of the private sector, but there is still no adjustment by the public administration that reflects an effort on par with that which Argentine households will have to make”Di Pace added.
Inflation: other increases expected for the coming months
The taxi service (it is assumed that the family uses it occasionally at least 1 time a week, thus expecting increases of 30% and another 20% for the next few months) for which the cost goes from $6,500 to $10,140
The expenses (an increase in tranches of 10%, 15% and 10% is expected in the coming months) therefore, it is possible that it will go from $12,500 to $17,394
prepaid family for 4 people (a readjustment of 105% is expected by the end of the year), it is expected to increase from $27,000 to $35,232 by the end of March 2023.
In education the case of the private school projected by inflation for the coming months would go from $20,000 to $27,838,
While the service telephony will go up from $3,200 to $4,450.
image.png
“An economy like Argentina’s with high inflation, a drop in private investment and employment, and few incentives for entrepreneurs, led the middle class to become the socioeconomic level with the greatest participation in our income structure, to be the thinnest strip and fragile in the middle of the pyramid. We live in an Argentina where the aspiration to move from the lower to the middle class is not possible and where the conditions have been met so that it is inevitable that many middle class progressively become lower class”, expressed the director of Focus Market.
To see this entire basket of services in perspective, for these services in September 2021 the basket of services was $141,668, while in September 2022 this same family should spend $178,928thus expressing that the year-on-year increase was 26.28%.
Now with all the price adjustments planned for the coming months, they would go to the value of $283,022, that is, an expected increase of more than 58.1%.
It is important to remember that this type of family of 4 members only pays the cost of services, but the value of a Basic Food Basket (Inflation-adjusted basket would amount to $52,928), leisure and recreation, home equipment, among others. Therefore, it is to be expected that at least the typical family must receive at least two minimum wages (SMVM $51,200) in order not to fall into the indigence line, and at least earn three average wages (average wage $94,000) to be above the line. of poverty.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
